More affordable RENT2BUY units now available in Gauteng
The importance of executing a Will correctly
September 16, 2024Understanding estate massing in community of property marriages
September 19, 2024More and more property buyers feel they are left out in the cold and not able to get their foot in the door to own a home.
Higher interest rates make it difficult for a buyer to secure his or her own home to buy.
Tenants often feel that they have been paying rent for 3- 10 years and have nothing to show at the end of the rental period, when they could have paid off a substantial part of their home loans.
MORE AFFORDABLE RENT2BUY UNITS NOW AVAILABLE
MDW INC Attorneys are excited to announce that rent-to-buy agreements are now available from three developments of properties owned by AFHCO.
AFHCO is a well-known property-owning company providing quality housing in the affordable housing market.
This collaboration will follow on the success of the Braamfontein Rent-to-buy offering when all the Rent-to-buy units were sold out, in the price range of R550 000.00 for a fully furnished apartment and the Lanoag development in Ferndale Randburg, where all the Rent-to-buy units sold for R1 400 000.00 are now secured and occupied.
“The concept of Rent2buy was developed and fine-tuned since 2007.
Over the past months we assisted the Municipality in Bredasdorp and Western Cape Department of Infrastructure and ASLA, a leading construction company launch a rent-to-own project.
The outcome of the Mill Park development rent-to-own product is that triple the number of aspiring homeowners secured their own homes through the rent- to-own concept, compared to home buyers who could immediately qualify for a home loan”, says Meyer de Waal, director of MDW INC Attorneys.
Click the link below to read more about this unique project:
AFHCO RENT-TO-BUY UNITS
The units made available by AFHCO for rent-to-buy are in sought after areas and are well-priced, with prices ranging from R156,000.00 up to R450,000.00.
Transfer fees are included in the purchase prices as well as the costs of the registration of a mortgage bond.
SAVE THOUSANDS OFF YOUR PURCHASE PRICE
“A first-time buyer who secures a rent-to-buy property can save thousands of Rands off the purchase price”, says De Waal.
The buyer will firstly save thanks to the Rent-to-Buy Deposit Saver and the second saving is a First Home Finance Subsidy (also known as a FLISP subsidy).
FIRST SAVINGS: DEPOSIT SAVER
A rent-to-buy buyer will be required to pay rent for the 12-month rent-to-buy term.
A portion of the rental paid will be regarded as a “Deposit Saver”.
The total amount of the Deposit Saver will be deducted from the purchase price at the end of the rent to buy term.
“This is a usual arrangement to benefit the purchaser, as usually the full rental paid goes to the landlord”, says De Waal.
SECOND SAVINGS: FIRST HOME FINANCE SUBSIDY (ALSO KNOWN AS FLISP SUBSIDY)
Since 1 April 2022, the First Home Finance subsidies were de-linked from only an approved home loan to qualify for such a subsidy.
A rent-to-buy structure is now also one of the de-linked finance solutions to qualify for such a subsidy.
HOW CAN ONE SAVE?
As an example, a buyer who wants to buy a property sold for R375 000.00, needs to earn an income of R13 564.00 per month to qualify for a 100 % home loan, paid off over 20 years at the current prime lending rate of 11.75 %.
The home loan repayment will be R4 063.00 per month.
The good news is that the buyer can actually save thousands of rands off the purchase price as a first-time buyer, as the first home finance subsidy amount for a qualifying buyer is R96 828.00 calculated on an income of R13 500.00.
This means that the following savings off the purchase price can be achieved:
| Purchase price | R375 000.00 |
| Less subsidy | R 96 828.00 |
| Less (example)
Deposit saver – R300.00 pm x 12 months |
R 3 600.00 |
| Balance home loan required | R274 572.00 |
thus, opening the door to more buyers to own their own homes.
LOWER HOME LOAN REQUIRED.
As the home loan required is now reduced to a balance purchase of R274 572.00 due, the income of the buyer required to qualify for such a home loan is now reduced from R13 500.00 per month to R9 915.00, if paid over 20 years at the current prime lending rate.
MORE SAVINGS:
The good news continues, says De Waal, “on an income of R9 915.00, the qualifying first-time homeowner can now qualify for an even higher first home finance subsidy of R122 905.00.”
The end result can be as follows:
| Purchase price | R375 000.00 |
| Less subsidy | R122 905.00 |
| Less (example)
Deposit saver – R300.00 pm x 12 months |
R 3 600.00 |
| Balance home loan required | R248 495.00 |
The monthly home loan repayment will be R2 974.00 (reduced from the 100% home loan on the full purchase price of R4 063.00 per month).
This means that the combination of rent-to-own and a first home finance (FLISP) subsidy can potentially save a buyer R126 505.00 off the original purchase price and R1 089.00 per month in home loan repayments.
Over a 20-year home loan repayment, R1 089.00 per month saved can add up to R261 360.00 saved in total.
PRICES
Prices range from R156 000.00 for a bachelor apartment to R 450 000.00 for larger apartments.
FEATURES
The units made available range from bachelor units, 1 and 1,5 bedroomed to 2 bedroomed units.
All units have 24 hours security, access control, free fibre, secure parking, DSTV connection points, pre-paid electricity, fitted kitchen cupboards and bedroom cupboards, wash areas, clothing lines, fitted geyser and are unfurnished.
HOW TO SECURE A VIEWING
The entire home buying process has been streamlined and made more accessible for interested buyers.
Gone are the days when you go and spend your precious time to go and view a property without the knowing what property finance (and now rent-to-buy structure) you can qualify for.
NO MORE “BUYING IN THE DARK”
You no longer must wish for the best property finance outcome as you will know exactly what you qualify for.
There is no need any more to close your eyes and hope that once you submitted your offer to purchase, your property finance will be approved by a bank.
TECHNOLOGY PROVIDES THE SOLUTION – ONLINE PROCESS
“Working with Meyer, we devoted countless of hours to find the best user experience and technology (fintech) to buy a property”, says Jacques Theron of 4Me Property Solutions.
ONLINE PRE-QUALIFICATION
“We also assist with an online process to pre-establish the property finance as well as the first home finance subsidy that a buyer can qualify for.
This same user experience and journey is now available to apply for a rent-to-buy buyer”, say Theron.
We developed a quick online interview.
Once the interview is completed, the buyer will receive the outcome of the rent-to-buy price he or she may qualify for, as well as first home finance subsidy, should such be applicable.
THOUSANDS OF USERS
“More than 47 000 first time buyers subscribed to this service over the past 18 months.
Gathering this information, we can match a buyer much faster with an available property to buy, or rent to buy property, and match this with the price and conduct a subsidy check comparison and provide other solutions available to buyers”, says Theron.
HOW TO MAKE USE OF THIS ONLINE SERVICE
Click here to subscribe to the 4Me rent to buy online interview.
PROPERTIES AVAILABLE
Flat/Apartment For Rent2Buy- 8 Myrtle Road, Krugersrus
2 bedroomed Flat/Apartment For Rent2Buy – 88 Harrison Street, Johannesburg Central
Flat/Apartment For Rent2Buy – 98 De Korte Street, Braamfontein
1 bedroomed Flat/Apartment For Rent2Buy – 88 Harrison Street, Johannesburg Central
FOR ENQUIRIES:
Meyer de Waal
021 461 0065 & 083 653 6975
Juanita van Vuuren
While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither writers of the articles nor the publisher will bear any responsibility for the consequences of any actions based on information or recommendations contained herein. Our material is for informational purposes and should not be construed as legal advice.
